Marco Iannuzzi, chief corporate social responsibility officer at Zenabis, says the company wants to compete with the major LPs in Canada.
On the heels of its public debut, a Zenabis Global (TSXV:ZENA) executive talks about the path for the company and its strategy when looking for partnerships.
The Investing News Network (INN) caught up with Marco Iannuzzi, chief corporate social responsibility officer with Zenabis, during the Lift & Co. (TSXV:LIFT) cannabis expo in Vancouver to talk about the company’s path now that it has reached the public market.
Zenabis made the TSX Venture Exchange (TSXV) in January, when it completed a reverse takeover between Bevo Agro and Sun Pharm Investments.
When asked about the timing of the public launch, Iannuzzi said the company could have stayed private for longer, but wanted to compete in the public space.
“We wanted to be compared and we wanted to eliminate the conversation of ‘how you can compare yourself to the big ones on the street if you’re not public?’” Iannuzzi told INN.
The executive and former BC Lions wide receiver said the company has serious aspirations of market dominance.
The new licensed producer (LP) has informed shareholders it currently has purchase orders for adult-use marijuana in New Brunswick, Nova Scotia, BC, Saskatchewan and the Yukon.
Zenabis holds two cultivation, processing and sales licenses in Canada for its facilities in Delta, BC and Atholville, New Brunswick, according to Health Canada.
In addition to these existing facilities, the LP is developing two new production spaces. An upcoming main greenhouse facility will be capable of producing 426,000 kilograms of cannabis.
Following its public debut, Rick Brar, co-founder and at the time CEO of Zenabis, decided to step down as chief executive and will instead serve as a special advisor to the company.
It was announced Andrew Grieve will replace Brar as CEO. The new CEO served as co-head of advisory at Agentis Capital.
Since Zenabis went public in Toronto, it has been treated to the rough volatility in the cannabis space with a 24.62-percent decline in value.
After markets closed on Monday (January 28), shares of the company were trading at C$4.41.
When asked about the challenge of making a public launch in a year many experts expect to see a massive market compression, Iannuzzi said the foundation of Zenabis will make it outlast its competitors.
“The market will determine itself, we just want to make sure that we’re in the conversation of being top three, top five, and I think that everything that we have put together at this point has made us in that conversation,” Iannuzzi said.
He added that attending road shows such as the Lift & Co. expo offers Zenabis an opportunity to meet “smaller companies” all asking for partnerships or some sort of business relationship with the LP.
“Because they realize the consolidation or attrition that is coming, and they’re really trying to partner with us,” Iannuzzi said.
Similar to several observers of the marijuana public markets, Iannuzzi expects to see “a lot of consolidation” over the next 12 months.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.